#what is implied volatility

[optionsgeek]

IV Crush: Does Implied Volatility Crush matter?

The "IV Crush" is a concept used by online "gurus" to sound smart and to perpetuate this belief that it actually matters. Here's a quick reason why the Top 1% of investors don't concern themselves with this "important" concept beyond the fact that it exists.

★☆ OptionsGeek ★☆ https://optionsgeek.com/top-1-club-members-area/what-is-iv-crush-and-how-the-top-1-avoid-it/

[optionstrategiesinsidersblog]

covered call strategy

  The covered call strategy involves the trader  against stock they’re purchasing or already hold. Besides earning a premium for the sale, with covered calls, the holder also gets access to the benefits of owning the underlying asset all the way up to the strike price, chart patterns where the stock would get called away.

There are many different uses of the covered call strategy. Some use the strategy to make additional profits to the stock they hold while markets trade relatively flat. double top pattern This is popular option strategy among traders, because, besides the premium, investors can benefit from capital gains should the underlying asset increase in value. Out of the money (OTM) call trades are placed when the outlook is neutral to bullish.

When to Use the Covered Call

The covered call strategy is usually opened with 30 to 60 days before expiration. This allows a trader to benefit from time decay. Of course, the optimum time for implementing the strategy depends on the investors goals. what is implied volatility If the goal is to sell calls and make money on the stock, then it’s best if there isn’t a lot of difference between the stock price and the strike price. If the goal is to sell the stock and the call, then you should be in a position where the calls will be assigned. For this to happen, the stock price will need to stay above the strike price until expiration.

 Some investors sell calls and purchase stocks at the same time. This strategy is called a buy-write, and it’s used to decrease the cost basis of recently purchased stocks. With cover calls, there is no additional margin requirements on the stock as you own it. bull call spread A suitable premium when selling the call is 2% of the current stock price (the premium divided by the stock price). You should calculate how you can gain from the strategy and set a premium accordingly. Investors will receive a higher premium when shorting options if implied volatility is high. For this reason, many investors like holding the stock, and then sell call options with a high premium to help cushion the risk of loss from a downward movement in the stock

[optionstrategiesinsidersblog]

Double Top Pattern Trading - Option Strategies Insider

The double top pattern is a twin-peak chart pattern representing a bearish reversal in which the price reaches the same levels twice with a small decline in between the two peaks. A double top pattern usually signals an intermediate or long-term change in trend. When identifying the pattern, traders need to understand that the peaks and troughs don’t have to form a perfect M shape for the pattern to emerge. top 10 trading platforms Before the pattern starts to emerge, there is a considerable uptrend spanning across many months. The first top is the highest value the trend has reached during the current trend.